(Bloomberg) -- Nikola Corp. said it is in discussions on an agreement with the U.S. Securities and Exchange Commission in which the company would pay a $125 million civil penalty, bringing the embattled electric-truck maker a step closer to closing an investigation that’s cast a shadow over its path to production.
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The company expects to pay the fine in installments, with the final settlement subject to further documentation, the company said Thursday as it reported third-quarter financial results. The pact is contingent on SEC Commissioners approving the matter in a vote.
The shares jumped 4.7% before the start of regular trading in New York.
Nikola, whose former executive chairman was charged with misleading investors, is trying to beat out established automakers by producing battery-electric and fuel-cell semi trucks, and by establishing a hydrogen fueling infrastructure to power them. The Phoenix, Arizona-based manufacturer promised to beat Tesla Inc. to market with a commercial EV and was the poster child for SPAC-listed clean energy upstarts in 2020.
But Nikola fell from grace after its founder and former chairman, Trevor Milton, was charged with defrauding investors. The SEC was examining claims by a short-seller that Nikola deceived investors about its business prospects. The fallout from comments he had made about the company’s technology and achievements had already led to negative comments from the short-seller and the cancellation of a deal with General Motors Co.
Nikola said Thursday it would seek reimbursement from Milton for the costs and damages in connection to the SEC’s investigations, along with the costs of other government probes.
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